Volkswagen collaborates with CATL to enhance EV battery technology By CIOTechOutlook Team

Volkswagen collaborates with CATL to enhance EV battery technology

CIOTechOutlook Team | Friday, 07 March 2025, 18:35 IST

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2024 proved not to be a good year for Volkswagen by every criterion, mainly because of falling sales in China. Domestic electric vehicles in China have become a massive hit and modernized, riding well over the stainless habits of foreign legacy automakers. As part of a new bounce back, Volkswagen has recently indented a strategic cooperative agreement with Chinese battery giant CATL.

Volkswagen China announced their strategic partnership on Chinese social media platform Weibo. The cooperation agreement is an important milestone in Volkswagen Group’s electrification strategy. The agreement was signed by CATL, Volkswagen Group China, and several of Volkswagen’s Chinese joint ventures, including FAW-VW and SAIC-VW. In addition to battery technology, the companies agreed to work together in raw material supply transparency and vehicle-to-grid technology.

Even with a total vehicle sale of nearly three million units last year, the German car manufacturer risks an even greater 2025 in China, the biggest car market in the world. Nevertheless, Volkswagen has made it quite clear with its actions that its commitment toward China is unwavering. In spring last year, Volkswagen announced an investment of 2.5 billion Euros in the Chinese market and invested $700 million in Xpeng, a China-based EV startup. VW intends to launch two new all-electric cars based on the Xpeng platform.

“By deepening cooperation with CATL, we will create high-performance, cost-effective battery solutions. Our core task is building a strong local supply system. This is also a crucial part of the Group’s In China, For China strategy”, said Alfonso Sancha, Executive Vice President of Volkswagen Group China.

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